A major advantage you get when you trade horse races on different betting exchanges is that you’re presented with a number of trading opportunities, all through the day. New races happen every 5 minutes! Let’s go over some of the popular strategies that can help you book handsome profits when trading horse races on betting exchanges.
Always scalp the horse racing odds
Many may perceive scalping as a long drawn out strategy, which although provides several winning trades, can prove to be detrimental to one’s profit and loss statement, whenever major losses incurred. Nothing denying this fact and that scalping does involve plenty of commitment and discipline. However, if you indulge in it regularly, scalping horseracing odds on betting exchanges can generate substantial and consistent profits for you.
Scalping horseracing odds mainly involves continuously backing a certain runner in a particular price, and thereafter laying that very same runner at a lower price, normally a tick below the marketed odds (that you backed it at). For instance, you back a horse at 2.50 odds, but the market shortens later and the odds drop down to 2.40. Now, you lay the exactly same runner and lock in a sure shot profit.
Scalping involves playing between two different price points, with you continuously laying and backing, with the price bouncing back and forth all this while.
Indulge in swing trading
You can also book handsome profits by indulging in swing trading on horse races. Although swing trading is essentially based on the same principles which are applicable to scalping, it mainly involves scoring gains from substantially greater price movements. Profiting from swing trading can take plenty of risk management skills and discipline, as you can’t expect the same kind of winning trade percentages as you may witness while scalping slight price movements.
An excellent way of identifying horses that may offer large price swings is by researching horses backed by prominent horseracing tips websites and high-profile tipsters, who pick them as one their best bets for that particular day. Considering the broad endorsement received by these horses in the media, and also by the racing experts on different social media, they are more likely to face price drops, with the day proceeding further. Getting on them well ahead of everyone else can allow you to bank on excellent opportunities, and make trades for guaranteed profits.
Successful swing trading requires good understanding of horseracing markets’ operations, and knowledge of the things that cause such price movements. You should also know how backing other runners in a given race may impact the price of your horse (that you’re trading on). You’ll not only require a solid grasp of risk management, as well as a disciplined mind to excel in swing trading, but also a good amount of experience in trading horseracing markets on betting exchanges. The ability of knowing causes that may possibly impact price movements is normally something that’s cultivated with experience in trading on familiar markets.
Use back to lay strategy
Back to lay strategy is easily counted amongst the most regularly used and oldest strategies for trading horse race markets on various betting exchanges. Let’s understand how this strategy works. It’s actually very simple. Back to lay strategy involves backing a certain horse before the race starts, at certain odds, and thereafter at some stage of the concerned race, laying the exactly same horse at shorter odds. When you do so, you’re basically seeking a horse that you believe will have an excellent start, or get into a commanding position at some point of the race, and as a result, may see its odds (of winning the race) getting slashed, giving you just the right window to trade out of your pre-race bet, allowing you to book a guaranteed profit.
Although back to lay strategy is immensely popular among traders, it has become increasingly difficult to execute it successfully. Why? Owing to the immense popularity of in-play or in-race trading, bookmakers and traders normally factor-in the expected performance of a runner during the race, into the odds set before the race, and thus significantly diminish any value present in this strategy.
Use lay to back strategy
On the other hand, you can also benefit immensely from opportunities available in ‘lay to back’ trading strategy. What’s meant by lay to back trading? Well, it’s pretty obvious! When you make a lay to back trade, you’re basically laying the runner at a given price, and thereafter looking to back the same runner at better odds, at some stage of the race, in order to book a guaranteed profit. Normally, it involves laying a particular horse before the start of the race, a horse which you expect to start at a slower pace. If that horse indeed starts slow, once the race begins, its odds will automatically drift in a way that you’ll get ample opportunities to back it at higher odds, compared to which you had laid it originally.
Even though ‘lay to back’ and ‘back to lay’ strategies are becoming increasingly difficult to spot and execute, if you’re prepared to do your share of due diligence on how particular jockeys and horses prefer racing on certain tracks, and gain good knowledge of UK-based racing tracks, apart from good understanding of how horserace betting markets operate on betting exchanges, you may still find enough opportunities to benefit from them.